India NEWS

India's Petroleum & Natural Gas Minister, Dharmendra Pradhan has shown concerns over increasing tensions amidst the oil-producing countries. "In today's times when there is a tension in the oil-producing countries then there is a direct impact on the prices of oil in the markets", said Pradhan. India is also planning to look for other oil import countries apart from the gulf nations.

Downstream giant, IOCL has planned to monetise its pipelines and storage infrastructure. The state-run oil guzzler has aimed to maximize the asset utilisation and lock future revenue using special purpose vehicles (SPVs). According to sources, many PE and VC funds have agreed to invest in IOC assets because of the assurance of elevated returns given by the refining major. IOC has expected this investment to raise its profitability and dividend payout.

Sri Chakra Oil Mill in East Godavari District caught fire yesterday. It took about eight hours for firefighters to put out the fire, managing to save the main factory and nearby oil storage tanks. Although the actual reason behind the fire is yet to be known, sub-inspector Anaparthi suspects an electrical short circuit to be the reason for the fire. No casualties were reported due to the accident.

India's ONGC has been given Environment Clearance (EC) for its onshore exploration, development and production of oil and gas in 100 locations in the non-forest area of Assam. According to official documents, the firm is investing Rs 3,500 crore in the project. "The EC is however subject to obtaining prior permission from the wildlife angle, including clearance from the Standing Committee of the National Board of Wildlife", informed ONGC.

After the announcement by the Indian government to privatise BPCL, many firms have started showing their interest in buying its stakes. Recently, Vedanta Resources Ltd has informed about that the company is evaluating an investment in the downstream giant. “One by one privatising these companies will take 10 years. It is better to (do it in) one-shot. The government has no business to be in business”, said Vedanta's Chairman.

Amidst extreme agitation against the Citizenship Amendment Act in India’s North-Eastern states, the region is heading towards a fuel supply crisis. With refineries shutdown, petrochemical plant and oil-producing facilities non-operational, it’s only a matter of weeks before the fuel crisis hit the region. Sources have revealed that IOC has shut down its Digboi refinery, and is running the Guwahati unit at minimal throughput, while OIL had to shut down its LPG production.

In order to save the time of the oil and gas producers, the Directorate General of Hydrocarbons (DGH) has introduced a single-window clearance system. Through this system, upstream companies will be connected to various arms of the government which will help them in electronic filing of the applications. The government has stated that the time lost in a slow grant of permits reduces the time of firms for actual groundwork.

From November 28, all the workers of Bharat Petroleum will go on strike. However, the authorities have assured that it will not affect the production or availability of fuel. “If the government refuses to withdraw its decision on privatisation, we would be forced to undertake longer strikes, which can spread to several days”, informed General Secretary of Cochin Refineries Employees Association.

The elite club of energy supermajors saw a new entry on Tuesday, with India’s Reliance Industries making into the world's energy royalty. The Indian conglomerate, owned by billionaire Mukesh Ambani, was valued at $138 billion, eclipsing BP Plc’s $132 billion value, at the close of trading on Tuesday. Reliance has rallied 40% this year, buoyed up by Ambani’s plan to cut the company’s net debt to zero in 18 months.

In unprecedented discussions, the Indian Parliament yesterday debated the air toxicity currently threatening the 48 million people residing in the Delhi NCR region. The debate saw opposition leaders demanding the government to set up a parliamentary panel to find long-term solutions to the problem. The air quality index in New Delhi exceeded 500 this month, about 10 times the recommended limit.

India's Oil and Natural Gas Corporation has reported a 37% decline in its net profit in the second quarter. Due to lower production and price realisation, the companies profit dropped down and was at Rs 5,487 crore. The company's revenue from operations has also dropped by 0.50% to Rs 101,554 crore. The natural gas production of ONGC has also suffered in this quarter and declined 17.4% to $60.33 per barrel.

India's downstream giant IOCL has received clearance from the Ministry of Environment to set up 2G ethanol plant. This Rs 766 crore plant will be set up in Haryana's Panipat district. Union Environment Minister took social media platform to inform that "This project not only promotes use of environment-friendly fuel but also aids in fulfilment of government's goal of doubling farmers' income".

Saudi-India strategic partnership has taken a major leap forward on Wednesday. Indian Strategic Petroleum Reserves Limited has signed an agreement with energy supermajor Saudi Aramco to lease part of the 2.5 million-tonne Padur storage in Karnataka. This bilateral deal focuses at building emergency crude reserves against volatility of the market.

If sources were to be believed, oil supermajor Saudi Aramco is interested in acquiring stakes in Indian downstream major, BPCL. In the biggest privatization bid in the Indian history, the Government of India is aiming to farm out its stakes in BPCL to private investors. Sources revealed that the Saudi state-run behemoth is in the process of evaluating its Indian investments and viewing BPCL buy out as a good opportunity.

Total and Reliance Industries might not bid for acquiring India's BPCL. Further, BP wants to explore the offerings before making a decision to decide for bidding. The Indian government has decided to sell 53.29% stakes of oil refining and marketing company BPCL. The firm accounts for 15% of the total installed refining capacity of the nation. Saudi Aramco might alone bid for the stakes or may have another partner, ADNOC.

Energy giant ExxonMobil has signed a memorandum of understanding (MoU) with Indian downstream major Indian Oil Corporation (IOC). The companies have decided to collaborate in order to expand liquefied natural gas (LNG) initiatives in India. “This initiative focuses on exploring new models of delivering cost-effective natural gas in India where it is most needed to complement traditional pipelines”, said ExxonMobil.

India’s downstream giant, IOCL is developing indigenous metals-based batteries in an attempt to prevent the dependence on lithium imports. Chairman of the state-run behemoth, Sanjiv Singh said that the metal-air batteries will generate energy by the oxidation of metals such as iron, zinc and aluminium. While the batteries are not rechargeable, motorists can swap plates to power them instantaneously, thereby eliminating the requirement for a charging infrastructure

In a major shakeup to the fuel retailing sector, the Government of India has repealed the legislation that had nationalized the downstream major, BPCL. The move will do away with the requirement to look for a Parliamentary nod before selling it off to private and foreign firms. The state is mulling to farm out most of its 53.3% stake in BPCL to a strategic partner, to encourage competition.